Demand Response and Advanced Metering

4 Pages Posted: 28 Apr 2006

See all articles by Ahmad Faruqui

Ahmad Faruqui

Electric Power Research Institute

Robert Earle

CRA International


Demand response - changing prices to reduce consumption at peak demand - creates value when it encourages electricity consumers to reduce load at peak times by either curtailing energy-using activities or shifting them to off-peak times. Load that is reduced during times when the power system has encountered critical conditions (in the form of higher prices on wholesale markets or stress from supply insufficiency) will carry greater value than load that is reduced during normal times.

Keywords: demand response, energy policy act, metering, DR programs, critical-peak pricing, real-time pricing, energy, energy consumption, energy policy,

JEL Classification: Q4, Q40, Q41, Q43, Q48, Q49

Suggested Citation

Faruqui, Ahmad and Earle, Robert, Demand Response and Advanced Metering. Regulation, Vol. 29, No. 1, pp. 24-27, Spring 2006, Available at SSRN:

Ahmad Faruqui (Contact Author)

Electric Power Research Institute ( email )

3412 Hillview Avenue
P.O. Box 10412
Palo Alto, CA 94304-1395
United States

Robert Earle

CRA International ( email )

2125 E. Orange Grove Blvd.
Pasadena, CA 91104
United States

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